Chaka Investment App Review 2021: Fees, Features & Safety

Chaka is an online investment platform for Nigerians. That allows them to trade and invest in US, Nigerian, and Chinese stocks online. It calls itself the investment passport for Nigerians.

You can start trading local and foreign stocks with Chaka from as low as $10 or N1000.

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Some of the foreign stocks of companies you can trade on this stock trading platform include Apple, Google, Netflix, Tesla and  Alibaba.

Review of Chaka

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4.0 Koboline Rating

Chaka gets 4 stars out of 5 for overall performance. Ratings at Koboline are determined by taking into account pricing, discounts, ease of filing a claim, website transparency, user experience, and complaint data from social media.

Is Chaka Safe?

Chaka is owned by Chaka Technologies Limited, a company registered with the Corporate Affairs Commission. The company is regulated by Local authorities in Nigeria as well as international authorities.

Chaka is regulated by Nigeria’s Central Securities Clearing System (CSCS) and by the Securities and Exchanges Commission (SEC). All local brokerage investments are facilitated by Citi investment Capital Limited. A licensed Nigerian stockbroking firm registered with the Security and Exchange Commission (SEC).

All global brokerage investments on this platform are offered through Citi Asset Management Ltd. in conjunction with a licensed US brokerage firm that is regulated by the US Financial Industry Regulatory Authority (FINRA) and the US Securities and Exchange Commission (SEC). Dollar funds and assets owned on Chaka are insured by the US Securities Investor Protection Corporation (SIPC) up to $500,000

How does Chaka investment works

To get started with Chaka, you have to open an account through the website or its Android app. You can also open an account with via email by emailing them at [email protected] or by phone. You can call them at +2347011204586. 

It takes about 3 minutes to set up an account on this platform if you have your information on hand. The information you’ll need ready are your BVN number, your national identification and a proof of address document. The remaining information you’ll need are basic questions you’ll have an answer to.

After you open an account, you will be assigned a CSCS number. CSCS (Central Securities Clearing System) is the Clearing and Settlement House of the Nigerian Capital Market. They oversee the Nigerian Stock Exchange. 

Chaka doesn’t charge any fees for opening account, for account maintenance, for wire transfers or for foreign Exchange Fees.

The company only charges a fee when a user executes a trade.  The user also pays mandatory regulatory fees levied by Nigerian regulators and other market regulators.

Every Chaka account has two wallets. A global and Local wallet. The global wallet is for foreign stocks and the local wallet is for trading local stocks. Your dividends are also paid directly to their respective wallets

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Pricing & Fees on Chaka Investment App

Whenever a trade is executed on an account, there is a charge of N100 or 0.5% per trade.

COMPULSORY REGULATORY FEES 

Securities & Exchange Commission, Nigeria (SEC) fee

The SEC regulates the capital market, and one of its objectives is to protect investors. There’s an SEC fee of 0.3% when you buy a stock.

Nigerian Stock Exchange (NSE) fee

The NSE provides the exchange hub to buy and sell securities. There’s an NSE fee of0.3% when you sell a stock.

Central Securities Clearing System (CSCS) fee

The CSCS ensures the ease of transfer and settlement of securities on the Nigerian stock market. The CSCS fee when you sell a stock is 0.378% (including trade alert); and when buying, there’s a CSCS trade alert fee of 0.063%. Both charges are VAT Inclusive.

Stamp Duties

As required by Nigerian laws, stamp duties are imposed at the rate of 0.075% on every share bought or sold on the Nigerian stock exchange.

Product Features of Chaka Investment App

• Platforms: Android, Web
• Minimum investment amount: $10 or N1000.
• Required Documentation: Government Issued ID and a Utility Bill ready. The documents will be an image, not an actual physical copy. Some basic information like (Verified Email Address, Verified Phone Number, Bank Account Information).
• Payment Options: Mastercard, VISA and Verve cards issued by Nigerian Banks. Bank Transfer.
• Holding period: As you like.
• Investment monitoring: You can track returns on investments purchased through the Chaka website or app.
• Withdrawals: Withdrawal of your available cash in your account can take up to 12 hours from when your request was made. To withdraw cash from sold stocks, it takes 3 days.  It takes 2 days for the stock exchange (locally and globally) to settle cash for sold shares. It would take an extra day to process the transaction.
• Security: Every account is protected by bank-grade AES encryption software. That protects communication between users devices and our servers.
• Stock gifts: You can give a stock gift to someone else with Chaka. You do not need to register on Chaka to gift a stock. However, for the recipient of the stock gift to redeem the stock, they will need to register on Chaka and be above 18 years old.